The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olorundare Sunday Thomas, has unveiled seven new strategic thrusts for implementation by the commission in its sustained efforts to transform the insurance industry and its contributions to the nation’s Gross Domestic Product (GDP) in the next decade.
The industry expert, in his welcome address at the National Insurance Conference held in Abuja, noted that the commission had in the past through regulatory measures helped in improving the performance of the industry in terms of awareness creation, interventions in key sectors and ensuring improved cover for assets in public and private sectors, among other benefits.
Describing the forum as one of the initiatives of the Commission to achieve the objective of incentivizing the law enforcement agencies, State Governments, relevant professional bodies and all other stakeholders, and sensitization of the general public of the role of insurance in redefining safety, Thomas said that President Bola Tinubu would also be launching the Insurance Sector 10-Year Strategic Roadmap and also the Guidance Note for the Insurances of Government Assets and Liabilities during the 3-Day conference.
Specifically on the commission’s agenda to consolidate the modest gains recorded so far through the strategic thrusts, he disclosed that over the next decade (2024-2033), the Insurance industry will seek to continue its transformation journey along seven strategic thrusts with the objective of transforming the regulatory environment to sustain the industry growth; transitioning to risk-based capital model, and promoting insurance awareness and adoption.
The insurance expert listed the other objectives as broadening insurance product offerings and improve effectiveness of distribution channels, enhancing digitalization of the insurance industry, deepening the industry’s talent pool and capabilities, and supporting Nigeria’s economic transformation and sustainability agenda.
While noting that the Commission has remained resilient and focused on implementing initiatives that will foster development of the Nigerian insurance industry and align its fortune with that of the nation as the Africa largest economy, he highlighted some of the flagship projects being implemented by the Commission as part of the its medium term NAICOM Strategic Plan 2021–2023 as including ensuring improved safety and soundness of the Nigerian insurance sector to continue to de-risk economic activities of Nigerians through the enhancement of our prudential regulatory tools and good corporate governance practices, and migration of the Commission’s supervisory regime to align with global best practices. This initiative has enhanced the Commission’s distress management and market restructuring.
Others are, Implementation of Project E-Regulation through operationalized Business Process Management Solution and NAICOM Portal, Implementation of an actuarial capacity development programme for the Nigerian insurance industry, opening up the insurance supply-side through licensing of 12 additional new entrants and expansion of insurance distribution channels, etc, and that the Commission, as part of its support to government’s initiatives, mobilized the insurance industry to contribute the sum of N500 million and free Life Insurance cover for front line workers in the management of the COVID-19 pandemic
Thomas further disclosed that the Commission also provided financial assistance to tertiary institutions in Nigeria to facilitate education of professionals required by the insurance sector, adding that such projects have been completed and commissioned in five tertiary institutions while seven others are at various stages of completion.
He clarified: “Notwithstanding the growth that had been sustained, the roadmap enumerated some of the challenges affecting the desired growth of the insurance industry which had persisted, such as: Talent gap, Comparatively low public awareness, Insurance affordability, Lack of trust and confidence in insurers, Cultural and religious bias, Inadequate distribution channels, Low enforcement of insurance, and others.
“In terms of its performance, the industry premium income between 2014 and 2022 grew at an average of 13.6%; from a premium income of N282 Billion to N726.2 Billion. The total assets of the sector also grew at an average of 12% for the same period; from an asset base of N827.5 Billion in 2014 to N2.33 Trillion in 2022”, the NAICOM boss added.
